Post
by Ryeguy » Tue Apr 04, 2023 9:44 am
This is where I have to again tip my hat to Rolex and their business acumen.
Just doing the math on inflation ($1 in 1965 being worth $9.55 today) you can look at comparisons between 1965 products and salaries versus current Sub prices.
For example, that $500 Rolex 5513 in 1965 was was about 20% the cost of a new Ford Mustang (1965 cost $2,427 base model).
According to an online inflation calculator, that $500 in 1965 is equivalent to $4,775 today.
According to Ford, a new base model Mustang is $27,770. 20% of that is about $5,554. So, If Rolex followed inflation, their stainless steel no date Sub should be about $5,000 today.
Using salaries, according to google, a NYC school teacher starting salary in 1965 was $6,485. Multiply that by the present day value of a 1965 dollar - $9.55, and you get $61,931.75. Google says the starting salary of a NYC school teacher today is $61,070 - so again, roughly equal.
Rolex has nearly doubled the price point and perceived value of their watches relative to expected inflationary price increases. They didn't just increase prices (anyone can do that) they also increased the demand for their product even at the higher price.
It is quite the impressive business accomplishment.